VAT Payments by Direct Debit

The deferral for VAT payments applies from 20 March 2020 until 30 June 2020. All VAT registered traders are eligible. This will generally mean the deferral of one quarter’s VAT: the payment due on 7 April, 7 May or 7 June 2020 or the monthly payments due on each of these dates. This is an automatic offer and no application is required. Businesses will not need to make a VAT payment during this period.

HMRC have not confirmed whether it will automatically suspend collection of direct debit payments of VAT during this period. If HMRC does not automatically suspend direct debit payments businesses will need to cancel their direct debit mandate and will need to remember to set it up again in due course. Agents cannot set up direct debit mandates on behalf of taxpayers.

Published Date: 
Thursday, 26 March 2020